Staples soars on reports company is up for sale

Staples stock is soaring on reports that the company is entertaining offers to be purchased.

The reports by the Wall Street Journal and Reuters on Tuesday cited sources familiar with sales discussions. The Journal said that talks involved a small number of possible private-equity bidders.

Staples is up 10% on the news.

Several national retailers have been purchased by private equity firms in recent years, including Neiman Marcus and Claire's. Some retailers purchased by private equity firms have even gone out of business, including Sports Authority and The Limited.

Since then, Staples has struggled. It closed 48 stores last year and has shuttered about 350 stores over the last five years. Just last month, it announced a $548 million loss and a 3% drop in sales in the quarter that ended in January. It also announced plans to close 70 more stores.

While rival Office Max has been profitable, it has also been closing its own stores, shutting 65 in its fourth quarter.